Joann to Close 500 Stores Nationwide Including 3 SWFL Locations

After filing Chapter 11 bankruptcy on January 15, Joann Fabrics and Crafts will close down 500 stores across the country. In Florida, 36 stores will be shutting down.

"The last several years have presented significant and lasting challenges in the retail environment, which, coupled with our current financial position and constrained inventory levels, forced us to take this step," said Michael Prendergast, interim chief executive officer of Joann, to Gulf Shore Business.

In Southwest Florida, three stores are closing: the North Naples location on Naples Boulevard, the Estero store at Coconut Point, and the Fort Myers store on Cleveland Avenue in South Plaza. The North Fort Myers store will remain open.

The chain is looking to sell its assets, with Gordon Brothers Retail Partners lined up as the lead bidder. Store closures will happen over several months, with going-out-of-business sales starting February 15.

The company isn't disappearing entirely - 300 stores and online shopping will continue. Company officials told Gulf Shore Business, "A careful analysis of store performance and future strategic fit for the company determined which stores should remain operating at this time."

The bankruptcy filing comes from several problems: supply chain issues, tough online competition, and reduced spending on crafts. However, real estate experts expect the empty stores to find new businesses - ranging from medical offices to retail shops - within a year.

The craft retailer's downsizing is part of a bigger retail trend. Macy's is closing 66 stores, while Kohl's is shutting down 27 locations. Experts at Coresight Research predict rough times ahead - they expect 15,000 store closures in 2025, double the number from 2024.

Additional Source: https://abcnews.go.com/GMA/Living/joann-close-500-800-fabric-craft-stores/story?id=118758811